A Commitment to Partnership: Birchez Associates Gets it Done
Ulster, New York: Success is often a quality that is measured subjectively. What one person considers success may be quite the opposite for someone else. But when it comes to the track record for Birchez Associates, one needs to look no further than the fact that there have been five ribbon cuttings on five communities within the past five years. By anyone’s definition, that’s getting it done!
Pictured at left: Lynn Kopka, Division of Housing & Community Renewal; Joel Brink, Town of Ulster Councilman; Alfred A. DelliBovi, CEO Federal Home Loan Bank of New York; Congressman Maurice Hinchey; State Senator John J. Bonacic; Steven L. Aaron, Founder & Managing Member of Birchez Associates; Michael Colgrove (in background), New York State Energy Research & Development; Josh Aaron; Judy Aaron; Joseph Malcarne, LEED AP & President Malcarne Contracting; Bryan Smith, Rhinebeck Savings
“This is a tremendous example of what strong public/private partnership can get done in difficult economic times,” said Chris Herrmann, an underwriter for Enterprise Community Investment. Enterprise helps facilitate the closing of affordable housing developments, like the recently opened Birches at Chambers, with investment of development capital and funding. He, and others, spoke to the feat achieved by Birchez Associates at the official dedication of The Birches at Chambers on July 8, 2010. “This project managed to build in the highest-end amenities, build in all the current green amenities, and get the project done even with the economic conditions of the past two years.”
“Keep in mind that this was done during one of the worst recessions we’ve seen in our lifetime,” said Judy Calogero, CEO of the New York Housing Conference and past commissioner of the New York State Department of Housing and Community Renewal, who was master of ceremonies at the community dedication. Despite sour economic conditions during the latter part of the past decade, Birchez Associates was able to forge affiliations with not-for-profit and government agencies to bring its plans to fruition.
The path to success hasn’t been without obstacles, however: thanks to census issues, the $15 million project almost didn’t happen. Just as The Birches at Chambers was about to begin, Ulster County lost its entitlement based on a snafu with census tract numbers and overnight tax credits lost a 30 percent boost. Then came the economic downturn and there was another 30 percent shortfall. To make sure that the project could get back on track, Steve Aaron, the founder and managing member of Birchez Associates, stepped up by providing a multi-million dollar loan to bridge the funding gap, while deferring the maximum amount he could in developer’s fees.
In addition, the New York State Housing Finance (nyhomes) and Division of Housing and Community Renewal (DHCR) was able to provide approximately $6 million is low interest loans, while Enterprise Community Investment supplied $3.20 million. The Federal Home Loan Bank of New York, through their local partnership with Rhinebeck Savings Bank, kicked in $1.32 million to help get the project finished.
When all was said and done, the building now offers 66-affordable apartments tosenior residents who pay, on average, $700 a month. That low rent is yet another success achieved by Birchez Associates because of private/public partnerships.
“When the state at its level looks to invest in someone, they look at someone with a wonderful track record,” said State Senator John J. Bonacic. “We could do a hundred more of these projects and fill them, and we will continually strive to get the tax credits to help our good partners like Steve — a premier affordable housing builder — do more and more of these projects.”
For a video on putting the financial pieces together, click here.
Brian Rubin for Birchez Associates, birchezassociates@gmail.com